Domino's Pizza Shares Plunge After Declining Fiscal 2026 Sales
Domino's Pizza Enterprises reported a surge in free cash flow and cost savings despite a 6.8% drop in network sales and an 11.43% share price decline.
Shares of Domino's Pizza Enterprises Ltd plunged 11.43% to $17.79 on August 26, 2026, after the company reported fiscal 2026 results that showed a struggle to maintain revenue. Network sales fell 6.8% to $3.87 billion, while global same-store sales dropped 4.1%, with the most significant declines occurring in Asia.
Despite the revenue slump, Group CEO Andrew Gregory led a strategic shift toward profitability through a promotional reset. This initiative reduced the company's dependency on vouchers and generated $67 million in annualized cost savings. These measures resulted in a 246.2% surge in free cash flow, which reached $164.1 million. Additionally, franchisee EBITDA improved by 11.3% to $105.7k per store.
The company is now attempting to rebuild order counts for fiscal year 2027 by scaling results from a pricing trial conducted in Western Australia. However, early trading data for the new fiscal year indicates continued weakness, with same-store sales growth remaining soft at -5.8%.
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